Policy —

FCC to “improve” CableCARD rules this month

The FCC admits what we already know: CableCARD hasn't worked. So the agency …

The FCC's new National Broadband Plan made it clear that the agency has had it with CableCARD's failings and wants to try something else. Specifically, the FCC wants a new "gateway" device that would apply to all TV providers (cable, satellite, IPTV). Like a broadband modem, the gateway device would take its inputs from the different TV systems, but output a signal in a standard format that can be used by DVRs, TVs, and set-top boxes.

The changes start this month. The FCC has just announced plans for its April meeting, and they include these two juicy items:

Network Gateway NOI: A Notice of Inquiry seeking comment on best approaches to assure the commercial availability of smart video devices and other equipment used to access the services of multi-channel video programming distributors.

CableCARD NPRM: A Notice of Proposed Rulemaking that proposes changes to the CableCARD rules for set-top boxes used with cable services, to improve the operation of that framework pending the development of a successor framework.

The network gateway will get a "notice of inquiry," which is just asking for public comment on how the agency should move forward. The CableCARD proceeding, though, gets a "notice of proposed rulemaking" and we'll get to see exactly what the FCC has in mind to patch the existing program.

CableCARD was an attempt by the FCC to create competition in the market for set-top boxes and DVRs by making it easy for third-party devices to access cable's video streams, even those that were encrypted. In this, it failed. We've noted for years that almost no one used the devices and that nearly all CableCARDs actually ended up in cable's own set-top boxes instead of in competing third-party products.

Source: FCC presentation

Last year, the FCC admitted to "limited success" (that is, total failure) with the CableCARD program. At one meeting, agency engineers showed a chart pointing out that only 14 nonleased set-top boxes were on the market in the US, compared to nearly 900 devices in the mobile wireless space.

What the FCC wanted was innovation of the kind seen in other video products like the TiVo, the Roku box, the AppleTV, the Xbox 360, and the PS3. All were essentially "set-top boxes" that did all manner of cool things, including access video content over the Internet from sites like Netflix. The problem is that none of them can integrate content from cable companies, which would have made them even more innovative and far more useful.

So, even as the industry kicks off its "tru2way" platform, the FCC has decided to wade in once more, patch the CableCARD program, and get to work on something to replace it.